After moving notably higher over the course of the previous session, treasuries gave back some ground during trading on Wednesday.
Bond prices moved to the downside early in the day and remained stuck in the red throughout the session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.3 basis points to 2.202 percent.
The pullback by treasuries was partly due to profit taking after the ten-year yield tumbled to its lowest closing level in five months on Tuesday.
Lingering geopolitical concerns helped to limit the downside, however, as traders kept an eye on developments regarding North Korea and the upcoming presidential election in France.
Treasuries saw continued weakness following the release of the Federal Reserve's Beige Book, a compilation of anecdotal evidence on economic conditions in the twelve Fed districts.
The Fed said economic activity increased in each of the twelve districts between mid-February and the end of March, with the pace of expansion equally split between modest and moderate.
The report also said employment expanded across the nation. The job growth also ranged from modest to moderate during the period.
Modest wage increases broadened, the Fed said while noting prices rose modestly since the previous report on balance.
Trading on Thursday may be impacted by reaction to reports on weekly jobless claims, Philadelphia-area manufacturing activity, and leading economic indicators.
The Treasury Department is also due to announce the details of next week's auctions of two-year, five-year, and seven-year notes.
by RTT Staff Writer
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